House of Commons Hansard #216 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was chair.

Topics

Economic Action Plan 2015, Act No. 1Government Orders

6:55 p.m.

Conservative

The Speaker Conservative Andrew Scheer

All those in favour of the motion will please say yea.

Economic Action Plan 2015, Act No. 1Government Orders

6:55 p.m.

Some hon. members

Yea.

Economic Action Plan 2015, Act No. 1Government Orders

6:55 p.m.

Conservative

The Speaker Conservative Andrew Scheer

All those opposed will please say nay.

Economic Action Plan 2015, Act No. 1Government Orders

6:55 p.m.

Some hon. members

Nay.

Economic Action Plan 2015, Act No. 1Government Orders

6:55 p.m.

Conservative

The Speaker Conservative Andrew Scheer

In my opinion the yeas have it.

And five or more members having risen:

(The House divided on the motion, which was agreed to on the following division:)

Vote #406

Economic Action Plan 2015, Act No. 1Government Orders

7:05 p.m.

Conservative

The Speaker Conservative Andrew Scheer

I declare the motion carried. Accordingly, the bill stands referred to the Standing Committee on Finance.

(Bill read the second time and referred to a committee)

A motion to adjourn the House under Standing Order 38 deemed to have been moved.

InfrastructureAdjournment Proceedings

7:05 p.m.

Liberal

Adam Vaughan Liberal Trinity—Spadina, ON

Mr. Speaker, I rose in the House just a few weeks ago, discussing the situation of a small town in Manitoba. St-Pierre-Jolys has an opportunity to add 300 people, 150 homes, to its community. The trouble is that the waterworks of the town has already passed capacity. It currently has capacity for 800 people but actually has 1,000 people in the community.

It is looking to grow. This is critically important. It is a francophone town in southeastern Manitoba. It needs critical mass to sustain services in French. If it is not allowed to grow and sustain its population base and add jobs and opportunities that providing 150 new homes would create in that community, much is at stake.

Therefore, the town is looking to its federal member and the federal government for infrastructure money, but instead of getting a response what they get are a couple of answers. First, it is a big announcement, but none of the money is available for 10 years. Second, the water services it wants to provide need to be changed and upgraded in order to meet new federal standards. The problem with that is that there is no money in this budget earmarked for water services in small communities, or even large communities, despite the fact that the federal government has actually changed the specifications for cities right across the country.

We have small towns with the capacity to grow. We have small towns that have urgent needs around water infrastructure. We have an infrastructure fund that is back-end loaded and much of the money will not even arrive until after the next election, forget this election, yet it keeps telling people in these small communities not to worry, that there is money on the table. There was not even a desk to apply to up until late last fall. A year ago, when the town wanted to apply for infrastructure funding, it could not apply. There had not been a provincial and a federal agreement put in place. There is no money earmarked for this now. There will be no dollars set aside for it. Federal standards have changed and this community, which is trying to grow, which has the capacity to grow, is being frustrated because it has no federal partner willing to step up.

My question is very simple. Why has this budget, which we have just voted on, refused to put dollars on the table for small municipalities and towns to upgrade their water facilities so they can grow and provide clean and safe drinking water?

InfrastructureAdjournment Proceedings

7:10 p.m.

Kitchener—Waterloo Ontario

Conservative

Peter Braid ConservativeParliamentary Secretary for Infrastructure and Communities

Mr. Speaker, our government's support for public infrastructure in this country has never been stronger. Since 2006, our government has dramatically increased the average annual federal funding for thousands of provincial, territorial and municipal infrastructure projects across the country. We are building on Canada's historic investments with $80 billion for public infrastructure over the next 10 years, including the $53-billion new building Canada plan for provincial, territorial and municipal infrastructure. As Canada's largest and longest federal infrastructure plan, the new building Canada plan provides predictable and flexible funding so that municipalities from coast to coast to coast can address their most pressing infrastructure priorities and plan for the long term.

Our new building Canada plan ensures support through a number of different funds. The federal gas tax fund supplies almost $2 billion in federal funding per year. Since 2006, our Conservative government has extended, doubled, indexed and made the gas tax fund permanent through legislation. We have also expanded its eligible categories so that it covers a wider range of types of projects. Further, municipalities can pool, bank and borrow against this gas tax funding.

Another major component of the plan is the new building Canada fund, made up of the national infrastructure component for projects of national significance. The provincial-territorial infrastructure component has dedicated funding for provinces and territories. Under the provincial-territorial infrastructure component, each Canadian province and territory receives a base amount, plus a per capita allocation over the 10 years of the program.

Not only are the new building Canada plan programs well under way, over $6 billion in public infrastructure funding continues to flow from the original plan and other federal programs to support infrastructure projects across the country.

Canadian municipalities, including those in Manitoba, have unprecedented ways in which they can put the federal funding to work in their communities. Through the plan, Manitoba will benefit from almost $1.2 billion in dedicated federal funding, including almost $476 million under the new building Canada fund, and an estimated $713 million under the federal gas tax fund.

The new building Canada plan has been open for business since March 2014, and programs are well under way. We are working with the provinces and the territories to identify projects, and we are processing proposals as quickly as they come in. In fact, more than $6 billion in total project costs have already been announced under the new program, and we look forward to announcing many more projects in 2015.

Late last year, our Prime Minister announced another $5.8 billion to address national infrastructure priorities that will have long-lasting, local benefits, including, of course, job creation. There is also significant funding from existing federal infrastructure programs, which continue to support public infrastructure in municipalities across Canada.

In closing, our government is committed to creating jobs, promoting growth and building strong, prosperous communities across this great country.

InfrastructureAdjournment Proceedings

7:10 p.m.

Liberal

Adam Vaughan Liberal Trinity—Spadina, ON

Mr. Speaker, those are all very nice figures, except when it comes to water plants, there is no dedicated money for them. If we take a look at areas like Cape Breton Regional Municipality and Sydney, Nova Scotia, the cost of putting in a water plant is the exact same amount as the entire municipal budget for one year. It is $625 million.

While the member talks about money being available, there is a $440-billion infrastructure deficit in this country, 60% of which is controlled by and under the responsibility of municipalities. Putting in an extra $5 billion is a drop in the bucket. The trouble is, because we are talking about clean drinking water, it is not drinkable water that is going into that bucket.

We need an infrastructure plan that deals with small towns and water supplies, we need it critically and we need it immediately. None of the programs that were just listed address that issue. Transit money does not build water plants. Housing money does not build water plants. Only water money, money identified for water services, will get the job done.

Why did the last budget not include a penny of funding for water supplies?

InfrastructureAdjournment Proceedings

7:10 p.m.

Conservative

Peter Braid Conservative Kitchener—Waterloo, ON

Mr. Speaker, as I mentioned earlier, our government's support for public infrastructure has never been stronger. Since 2006, our government has dramatically increased the average annual federal funding for thousands of provincial, territorial and municipal infrastructure projects across the country. We are building on these historic investments with $80 billion for public infrastructure over 10 years, including, of course, the $53-billion new building Canada plan.

Canadian municipalities have unprecedented ways in which they can put this federal funding to work in their communities. People in St-Pierre-Jolys, Manitoba, can count on their federal allocation through the gas tax fund as a minimum. We look forward to considering investing in projects that this city deems to be important, just as we do for all Canadian municipalities through the new building Canada fund.

Our government is committed to creating jobs, promoting growth and building strong, prosperous communities across this country.

InfrastructureAdjournment Proceedings

7:15 p.m.

Green

Bruce Hyer Green Thunder Bay—Superior North, ON

Mr. Speaker, infrastructure is the backbone of any economy. Canada's economic success depends on smart and strategic investment in infrastructure programs.

Unfortunately, the Conservative government has allowed Canadian infrastructure to crumble and decay, including by ignoring Ontario, our country's industrial heartland, in favour of subsidizing the energy sector in Alberta.

Ontario pays 39% of all federal revenues but receives only 34% of federal program dollars. My riding of Thunder Bay—Superior North in northern Ontario represents a vast and remote region. However, our region's economy faces unique challenges and threats. Unemployment rates are high, commodity prices are falling, forestry continues to suffer, tourism has fallen without adequate federal marketing, exports have decreased, and there are no roads or power lines to most remote first nations communities.

The economic growth rate in Canada from 2006 to now, under the Conservatives, has fallen to a miniscule 1.77%, the lowest growth rate since 1930. The wrong economist is running Canada.

The IMF estimates that Canada pays out an astonishing $34 billion a year in subsidies and untaxed externalities to the fossil fuel industries. That is $34 billion a year to some of the wealthiest corporations in Canada, while total investments in infrastructure, the building block of our economy, are receiving only a quarter as much, at about $7.5 billion a year.

The population of Canada is 35 million. That means, if we do the math, a whopping $952, or almost $1,000, per year in energy subsidies from every Canadian to the oil sector. On average, every Canadian was taxed—it is really a tax—$952 in 2014 to subsidize big oil. This is on top of the payments we make through our energy bills. David Lipton of the IMF explains that removing these subsidies worldwide could lead to a 13% decline in C02 emissions.

Infrastructure monies to municipalities have gone down significantly under the Conservatives. Budgetary holdups meant that some Canadian cities are likely to be receiving no infrastructure funding for the third year in a row.

FedNor has steadily decreased its funding to various programs in northern Ontario, despite increased applications for funding. Those applications are held up, stuck on his desk, by the minister from Kenora, who puts his party before his communities and his constituents.

What could Canada do with an extra $34 billion a year? We could build about 140 kilometres of badly needed urban subway lines every year, or we could build about 560 kilometres of light rail transit.

Canada's infrastructure deficit of crumbling roads, rusting rail, and outdated water and sewage treatment is pegged at $171 billion in backlog. That huge backlog could, and would, be wiped out in five years with the revenue we are subsidizing to the oil, coal, and gas sectors, but our Prime Minister has refused repeatedly to even meet with the premiers to discuss it.

When will this government start supporting important infrastructure projects, including those in Thunder Bay—Superior North and all across Canada?

InfrastructureAdjournment Proceedings

7:20 p.m.

Kitchener—Waterloo Ontario

Conservative

Peter Braid ConservativeParliamentary Secretary for Infrastructure and Communities

Mr. Speaker, in fact, since this Conservative government was elected in 2006, Canada has led all G7 countries with respect to investments and infrastructure as a percentage of GDP. What have been the results of those investments? The average age of public infrastructure is now at its lowest point since the early 1980s.

Our government recognizes that public infrastructure is the backbone of our communities and that investing in infrastructure is vital to ensuring strong, sustainable, and healthy communities with thriving economies. That is why this government is providing an unprecedented $80 billion for public infrastructure over the next 10 years. This includes the $53 billion new Building Canada plan, the largest and longest federal infrastructure plan in our country's history. The plan was designed following extensive consultation with our partners. It provides flexible and predictable federal funding in support of infrastructure projects of national, regional, and local significance, and it is made up of a number of different funds.

The new Building Canada plan has been open for business since March of 2014. Moreover, over $6 billion in public infrastructure funding continues to support infrastructure projects across the country from our original Building Canada plan, which started in 2007.

Providing almost $2 billion of predictable funding per year directly to municipalities, the federal gas tax fund has been significantly improved since 2006. Not only have we expanded its eligible categories to support a greater variety of projects, but our government has also extended it, doubled it, indexed it, and legislated it as a permanent source of federal infrastructure funding.

Moreover, municipalities can pool, bank, and borrow against this funding, allowing them more flexibility in addressing their local needs. Municipalities, including Thunder Bay, can count on the federal gas tax fund. In fact, last year Thunder Bay used contributions from the federal gas tax fund to help revitalize local roads and bridges. Thunder Bay received more than $6.2 million in 2014 alone through the federal gas tax fund.

The plan also contains the $14 billion new Building Canada fund, which is geared toward funding projects of importance to provinces, territories, and municipalities. Under the provincial-territorial infrastructure component, each Canadian province and territory will receive a base amount, plus a per capita allocation over the life of the program. Our government is working with provinces and territories to identify projects, and we are processing proposals as quickly as they come in. We look forward to considering investing in further projects that Thunder Bay deems critical, just as we will for all municipalities across Canada.

Our government is focused on creating the right conditions for economic growth and prosperity.

InfrastructureAdjournment Proceedings

May 25th, 2015 / 7:20 p.m.

Green

Bruce Hyer Green Thunder Bay—Superior North, ON

Mr. Speaker, it is great that Paul Martin was forced into sharing gas taxes with the municipalities by Jack Layton, but the priorities of the current Conservative government are completely out of whack. While other countries are investing in infrastructure, Canadians are left dodging potholes and falling bridges and dealing with antiquated sewers that back up into basements in Thunder Bay—Superior North.

Meanwhile, Canada is a world leader when it comes to handouts to rich multinational oil corporations. The government needs to smarten up, stop taxing average citizens each at $952 every year, and giving that money to oil executives to stash in Bermuda and Panama. Instead, when will the government begin giving infrastructure in municipalities across Canada the attention that they deserve and need?

InfrastructureAdjournment Proceedings

7:20 p.m.

Conservative

Peter Braid Conservative Kitchener—Waterloo, ON

Mr. Speaker, our government recognizes that investing in public infrastructure is vital to ensuring strong, sustainable, and healthy communities with thriving economies. That is why this government is providing an unprecedented $80 billion for public infrastructure over 10 years, which includes our new Building Canada plan.

This plan has been open for business since March of 2014, and over $6 billion in funding continues to flow from our existing infrastructure programs. Last year, the City of Thunder Bay used contributions used contributions from the federal gas tax fund to help rehabilitate its local roads and bridges. Our government is working with provinces and territories to identify their top infrastructure priorities, and we are processing proposals as quickly as they come in.

We look forward to considering investing in projects that Thunder Bay deems critical, just as we will for all Canadian municipalities, to ensure the long-term prosperity of this country.

InfrastructureAdjournment Proceedings

7:25 p.m.

NDP

The Deputy Speaker NDP Joe Comartin

Order.

Pursuant to Standing Order 81(4), the motion to adjourn the House is now deemed to have been withdrawn, and the House will now resolve itself into committee of the whole for the purpose of considering all votes under Finance in the main estimates for the fiscal year ending March 31, 2016.

I do now leave the chair for the House to resolve itself into into committee of the whole.

(Consideration in committee of the whole of all votes under Finance in the main estimates, Mr. Joe Comartin in the chair.)

Finance—Main Estimates 2015-16Business of SupplyGovernment Orders

7:25 p.m.

NDP

The Chair NDP Joe Comartin

Order.

Tonight's debate is a general one on all of the votes related to Finance. The first round will begin with the official opposition, followed by the government and then the Liberal Party. After that, we will follow the usual proportional rotation for the House.

The order adopted earlier today allows parties to use each 15-minute slot for speeches or for questions and answers by one or more of their members. In the case of speeches, members of the party to which the period is allotted may speak one after the other, although the time for speeches should not exceed 10 minutes.

The Chair would appreciate if the first member speaking in each slot would indicate how the time will be used, particularly if it is to be shared.

The order states that when the time is to be used for questions and answers, the Chair will expect that the minister's response will reflect approximately the time taken by the question. Furthermore, no quorum calls, dilatory motions, or requests for unanimous consent shall be received by the Chair.

I also wish to indicate that in committee of the whole, comments should be addressed to the Chair. I ask for everyone's co-operation in upholding all established standards of decorum, parliamentary language, and behaviour.

We may now begin tonight's session.

The House in committee of the whole, pursuant to Standing Order 81(4)(a), the second appointed day, consideration in committee of the whole of all votes related to Finance in the main estimates for the fiscal year ending March 31, 2016.

Debate, the hon. member for Parkdale—High Park.

Finance—Main Estimates 2015-16Business of SupplyGovernment Orders

7:25 p.m.

NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Chair, I am very pleased to participate in committee of the whole this evening. I welcome the Minister of Finance and I will use my full 15 minutes for questions to the minister, because I have a lot of questions this evening.

The government has lapsed a total of $7.26 billion, or about 3% of total funds in the recent public accounts. Could the minister give us a projection for lapsed funding in his department for fiscal year 2014-15?

Finance—Main Estimates 2015-16Business of SupplyGovernment Orders

7:25 p.m.

Eglinton—Lawrence Ontario

Conservative

Joe Oliver ConservativeMinister of Finance

Mr. Chair, the lapse included in fiscal projections in budget 2015 reflect an estimate of planned spending that does not proceed in any given year.

Lapses in department spending are to be expected. They result from factors such as lower-than-expected costs for programming and revised schedules for implementation of initiatives.

The lapse expected in 2014-15 is $7.2 billion, in line with that recorded in 2013-14.

Finance—Main Estimates 2015-16Business of SupplyGovernment Orders

7:30 p.m.

NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Chair, that is a lot of veterans' benefits, I think.

Could the minister explain why he has consistently missed or downgraded his budgetary GDP projections in the years after the financial crisis?

Finance—Main Estimates 2015-16Business of SupplyGovernment Orders

7:30 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, as the member opposite should know and perhaps does, what we do is take the average of 15 private sector economists' forecasts. If there are some outliers, we may adjust for that, but we do not independently arrive at the forecast. These are the forecasts of some of the most expert economic academicians and practitioners in the entire country. They are the ones whose estimates we rely on.

Finance—Main Estimates 2015-16Business of SupplyGovernment Orders

7:30 p.m.

NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Chair, since 2006, Canada's GDP growth has been a mere 1.77%, which is very meagre.

Could the minister tell the House which was the last government that had such weak growth during its time in power?

Finance—Main Estimates 2015-16Business of SupplyGovernment Orders

7:30 p.m.

Conservative

Joe Oliver Conservative Eglinton—Lawrence, ON

Mr. Chair, with the help of Canada's economic action plan, Canada's economy has seen one of the best economic performances among all G7 countries.

As we have repeatedly said, however, Canada is not immune to global economic challenges beyond our borders. That is why economic action plan 2015 continues to focus upon supporting job creation and economic growth, while returning Canada to balance.

Of the 1.2 million jobs created from July 2009 to April 2015, more than 90% have been full time, 80% in the private sector and almost 60% in high-wage industries.